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Nigeria’s President Muhammadu Buhari has approved four airports in Nigeria as Special Economic Zones.
The approved airports are Murtala Muhammed International Airport, Lagos; Port Harcourt International Airport, Rivers; Mallam Aminu Kano International Airport, Kano and Nnamdi Azikiwe International Airport, Abuja.
This was disclosed on Thursday by the Minister of Aviation, Hadi Sirika.
“I am very glad to announce that Mr President has Approved our four International Airports as Special Economic Zones. These are Lagos, Kano, Abuja & Port Harcourt. Our roadmap working,” he tweeted.
A special economic zone is an area in which the business and trade laws are different from the rest of the country.
SEZs as mostly abbreviated, are located within a country’s national borders, and their aims include increasing trade balance, employment, increased investment, job creation and effective administration.
To encourage businesses to set up in the zone, financial policies are introduced. These policies typically encompass investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays, where upon establishing themselves in a zone, they are granted a period of lower taxation.
The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment (FDI).
The benefits a company gains by being in a special economic zone may mean that it can produce and trade goods at a lower price, aimed at being globally competitive.
In some countries, the zones have been criticized for being little more than labor camps, with workers denied fundamental labor rights.